Six Lessons in Simple Living

Imagine this: college students refusing to rack up debt and getting together to talk about living simply. Impossible? Not quite. MoneyCentral has an article on just a group of young adults who could teach most of America a thing or two about handling money. For instance:

"Adam Haun, a college student in Seattle, doesn't have a credit card and doesn't plan to get one. "I view it as spending money I don't have," he says. Diana Nguyen, also an undergrad, says she has a card, but will only use up to half her $1,000 limit -- and only if she can pay it off at the end of the month."

"Diana and Adam are part of a small group of Seattle University undergraduates who are meeting weekly to discuss the simple life.  These young men and women are trying to buck a national trend toward higher and higher debt. And while their peers don't always understand what they're doing and why, they are trying to make a permanent change in how they view money, credit -- and their future plans."

These kids are really swimming against the flow. Consider these stats on college students and debt:

"[The average college student] carried an average outstanding credit card balance of $2,169 in 2004. Seven percent carried a balance exceeding $7,000."

"Only 21% paid off all credit card balances at the end of the month, while 23% made just the minimum payment -- or less."

"Nationally, 43% of them carried four or more credit cards."

Here are the six lessons the simple living students say are key to controlling your money (and your debt):

Lesson 1: Act consciously -- "It's not just to consume less. It's to consume differently," she says. "We sort of go blindly along, especially when it comes to consumption."

Lesson 2: Don't carry a balance on your cards -- Credit cards are OK, but use them sparingly, and only if you can pay off the balance at the end of the month.

Lesson 3: Never buy on impulse -- If you see something you want, put it aside and think about it for at least a couple of days. Chances are, the impulse will pass.

Lesson 4: Find new venues for entertainment -- Find ways to socialize and create your own entertainment that don't involve expensive restaurant tabs or event tickets.

Lesson 5: Leave space in your schedule for quiet time -- Quiet time helps you recharge your spiritual batteries and give you time to reflect on life and make better choices.

Lesson 6: Think ahead about what really matters -- Even if you can't plan exactly what you'll be doing after school, at least develop a clearer idea of what you want and what you value -- and how you might achieve it.

Wow! There's a lot of wisdom here for a group so young. I think they all have bright financial futures.

Update: Time to link to the Beltway Traffic Jam.